Does the Floyds 99 franchise agreement allow a franchisee to waive claims of fraud in the inducement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. Any statements or representations signed by a franchisee purporting to understand any fact or its legal effect shall be deemed made only based upon the franchisee's understanding of the law and facts as of the time of the franchisee's investment decision. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement's stance on waiving claims of fraud in the inducement varies by state. For franchisees in California, the FDD explicitly states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving any claim of fraud in the inducement. This protection extends to both common law and statutory claims, ensuring franchisees can rely on statements made by Floyds 99 or its representatives.
For franchisees in Maryland, a similar provision exists, ensuring that no statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship can waive claims of fraud in the inducement. This addendum supersedes any other conflicting terms in any document related to the franchise. Similarly, in New York, no statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement.
In Virginia, the Floyds 99 FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Floyds 99. These state-specific addenda provide additional protection to franchisees, ensuring they do not unknowingly relinquish their rights to pursue claims of fraud based on misrepresentations made during the franchise sales process. Prospective franchisees should carefully review the addendum specific to their state to understand the full scope of these protections.